The Central Bank of Nigeria (CBN) has issued a directive to banks and other financial institutions to exercise caution while conducting transactions with businesses and individuals from specific countries.
The apex bank has identified Cameroon, Croatia, and Vietnam as countries of concern. The circular, released on Thursday and signed by Chibuzo Efobi, Director of CBN’s Financial Policy and Regulation Department, outlines the decision made by the CBN in response to resolutions reached during a recent plenary session of the Financial Action Task Force (FATF).
The FATF is an intergovernmental organization focused on combating money laundering and the financing of terrorism.
The FATF has identified these jurisdictions as requiring increased monitoring and states that they are actively working with the FATF to address deficiencies in their systems related to countering money laundering, terrorist financing, and proliferation financing.
Efobi further highlighted that certain countries remain on the FATF’s “blacklist” of high-risk jurisdictions. These countries include Iran, Myanmar, and North Korea, officially known as the Democratic People’s Republic of Korea (DPRK).
“The outcomes of the Financial Action Task Force (FATF) Plenary conducted from June 21-23, 2023, and the subsequent addition of Cameroon, Croatia, and Vietnam to the list of jurisdictions under ‘Increased Monitoring’ have drawn the attention of banks and other financial institutions,” the circular states.
The circular also emphasizes the need for enhanced due diligence and the potential implementation of countermeasures in severe cases to protect the international financial system.
Additionally, the CBN reminded financial institutions that the Russian Federation’s membership in the FATF remains suspended due to its invasion of Ukraine.
Financial institutions are urged to remain vigilant and alert to emerging risks resulting from attempts to bypass measures put in place to safeguard the international financial system.
“In light of these developments, financial institutions are directed to take note of all additions to jurisdictions under ‘Increased Monitoring’ and high-risk jurisdictions subject to a ‘Call for Action.’ They are further instructed to implement necessary measures effectively to mitigate these risks,” the circular concludes.
This directive from the CBN underscores the importance of combatting financial crimes and maintaining the integrity of the Nigerian financial system in collaboration with global efforts led by the FATF.
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